Primark Stores Ltd

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Background

Primark Stores Ltd, commonly known simply as Primark, is a subsidiary of Associated British Foods (ABF), a diversified international food, ingredients and retail group which advertises global sales of £8.2bn with 96,000 employees located throughout 44 countries worldwide.[1]

On its website, Primark describes itself as 'a retail group in the value sector and operates a total of 187 stores in Ireland (where it trades under the Penneys brand),Holland , Spain and the UK'. Primark state that they employ in excess of 27,500 people and that in the UK, Market researchers TNS have ranked them as the second largest clothing retailer by volume in respect to market share, whilst Verdict Research is reported to have placed Primark as the leading retailer in value clothing. In addition is it claimed that Primark was voted 'Best Value High Street Fashion' by GMTV and ITV viewers[2].

According to the Times, Primark's managing director and Chairman Arthur Ryan’s emphasis 'has been on trading lots of stock and being the cheapest on the high street as part of a drive to build market share'. A former employee is described as saying that “He would look at a product line that was selling well at £5 and cut the price to £3 because it would sell even more.”

The company still sells clothes at unbelievably low prices. According to the Times, it sources mainly from Asia, where it deals direct with manufacturers. It is claimed that it maintains its extraordinary cheap prices by ordering in huge volumes.[3]

Primark is descibed as priding itself on 'being the cheapest place for clothes on the high street - beating even giant Tesco. “£1 in Primark, would be £1.10 in Tesco and maybe £1.60 in Marks & Spencer,” said one retail analyst'[4]

Biographical Information

History

Primark was set up in Ireland by ABF in 1969, when it began trading as Penneys, it later took off in Britain in the late 1990's. Chairman and managing director Ryan is described as having persuaded ABF that one of the biggest growth areas in retail would be value fashion for young people.[5]

Primark is described as having purchased 'a huge portfolio of Littlewoods stores in July 2005'[6].


Current activities

Cheap Clothing: if you're not paying for it, then who is?

As Wyllie of The Scotsman points out, the 'next time you ogle a £4 peasant skirt... ask yourself this: if you're not paying for it, then who is?'[7]

Primark was named as the least ethical place to buy clothes in Britain by Ethical Consumer magazine in 2005[8] and they scored just 2.5 out of 20 points on the ethical index that ranks the leading clothing chains on criteria such as workers' rights and whether they do business with oppressive regimes.

Campaining group War on Want have described manufacturers and retailers of cheap clothing as "chasing poverty round the world"[9], with the aim of sourcing labour as cheaply as possible in one of the 160 exporting countries which furiously compete to export garments to the richest nations. In these countries, workers are reported as being paid as little as 5 pence an hour, which highlights how cheap clothing can begin to look relatively expensive.

"Companies like Tesco, Primark and Asda have squeezed their suppliers to the limit, forcing them to push down prices," says Simon McRae of War on Want. "Quite simply it can go no further without suppliers virtually working for free."[10]

Code of Conduct

When entering Primark's website, a large 'Ethical Traiding' link pops up in the middle of the screen which leads to their 'Code of Conduct'[11] . Within this code, Primark states that:

  • Freedom of association and the right to collective bargaining are respected
  • Working conditions are safe and hygienic
  • Living wages are paid
  • Working hours are not excessive
  • No harsh or inhumane treatment is allowed
  • Child labour shall not be used
  • No discrimination is practised
  • Employment is freely chosen

In 2006, The BBC reported findings that found textile workers in Bangladesh were being paid as little as five pence an hour to make cheap clothes for Tesco, Asda and Primark with starting wages at the factory being as little as £8 a month[12]. The report continues that this is barely one third of the living wage in Bangladesh and it is mainly women who regularly work 80 hours a week in factories described by War on Want as "potential death trap[s]". Better-paid sewing machine operators are reported to earn £16 per month, however the report states that 'some workers spent up to 96 hours per week in the factories without even a day a week off.' Tesco, Asda and Primark are all reported to strongly deny the allegations.

In an article describing issues surrounding companies such as Primark, Asda and Tesco, Wyllie reports that 'Low-cost retailers have even been accused of actively discouraging trade unions. Only a small percentage of garment workers are unionised and the suppression of trade unions and persecution or dismissal of workers who try to organise is common. Production is increasingly taking place in countries like China, where freedom of association is illegal'[13].

Views

Affiliations

People

In 2007, Primark's chairman and managing director was Arthur Ryan who lives in Ireland at Lansdowne Road (which is known as 'millionaires’ row') and who is a friend of Sir Philip Green[14]

Funding

Clients

Publications, Contact, Resources and Notes

Publications

Contact

Address:
Phone:
Email:
Website:

Resources

Notes

  1. ↑ Primark Stores Ltd Background] Primark website. Accessed 21st March 2009
  2. ↑ Primark Stores Ltd Background] Primark website. Accessed 21st March 2009
  3. ↑ Davey, J. (2007) Primark oldie’s golden touch: The man who built the high street phenomenon is 71. Will it be as successful when he finally retires? 22nd April 2007. Accessed 21st March 2009
  4. ↑ Davey, J. (2007) Primark oldie’s golden touch: The man who built the high street phenomenon is 71. Will it be as successful when he finally retires? 22nd April 2007. Accessed 21st March 2009
  5. ↑ Davey, J. (2007) Primark oldie’s golden touch: The man who built the high street phenomenon is 71. Will it be as successful when he finally retires? 22nd April 2007. Accessed 21st March 2009
  6. ↑ Davey, J. (2007) Primark oldie’s golden touch: The man who built the high street phenomenon is 71. Will it be as successful when he finally retires? 22nd April 2007. Accessed 21st March 2009
  7. ↑ Wyllie, A. (2007) Does the devil wear Primark? The Scotsman. 9th August 2007. Accessed 25th March 2009
  8. ↑ Hickman, M. (2005)Primark is named as least ethical clothes shop The Independent. 8th December 2005. Accessed 15th January 2009
  9. ↑ Wyllie, A. (2007) Does the devil wear Primark? The Scotsman. 9th August 2007. Accessed 25th March 2009
  10. ↑ Wyllie, A. (2007) Does the devil wear Primark? The Scotsman. 9th August 2007. Accessed 25th March 2009
  11. ↑ Primark Homepage Accessed 26th March 2009
  12. ↑ BBC News UK firms 'exploiting Bangladesh' 8th December 2006. Accessed 25th March 2009
  13. ↑ Wyllie, A. (2007) Does the devil wear Primark? The Scotsman. 9th August 2007. Accessed 25th March 2009
  14. ↑ Davey, J. (2007) Primark oldie’s golden touch: The man who built the high street phenomenon is 71. Will it be as successful when he finally retires? 22nd April 2007. Accessed 21st March 2009
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